In Energy, Hedge Fund Exposure Dragging Along Bottom Amid Mean Reversion

A Credit Suisse prime brokerage report notes that the “market malaise” spreading unease across markets “presents as more a valuation bleed than the risk-on/risk-off gyrations experienced last August and more recently this January.” This comes as certain exposure levels (including energy) haven’t moved much off their fourth quarter bottom and are still mired near two-year lows.

Energy sector exposure levels highlight relative dispersion

As the eyes of markets look at the commodity markets, hedge fund net exposure levels bounce near 75% coming off earlier highs near 125%, a Global Hedge Fund Bulletin noted.  This comes as a relative comparison to an oil price chart notes correlations...